Intevac and TES Co. have entered into a semiconductor capital equipment business alliance covering product development, manufacturing, and sales of the companies' chipmaking gear.

Under the terms of the deal announced last week, Yong-in City, South Korea-based TES gets exclusive rights to sell and build Intevac's high-productivity Lean Etch dielectric etch system for the Korean and Chinese markets, while the Santa, Clara, CA company gains exclusive rights to build and sell the Korean firm's 200- and 300-mm Telia CVD systems to customers throughout the rest of the world. The two companies will work together to optimize operational performance and jointly develop future products.

"There is a strong desire in Korea to cultivate and support local capital equipment companies. TES' close proximity to the major Korean semiconductor companies, along with their excellent reputation in supporting them, can help us accelerate Lean Etch sales," said Kevin Fairbairn, president/CEO of Intevac. "The alliance business model will enable both companies to reduce manufacturing costs and operating expenses while enabling us to offer a wider portfolio of products to our customers.

"Intevac will now be able to offer CVD systems in our served markets earlier--and at reduced development costs--than previously planned. This business model is a groundbreaking approach to serving the global semiconductor industry."

"We are very pleased with our alliance with Intevac," added TES' president/CEO, Shoong Ehl Ju. "By being able to offer Intevac's Lean Etch system along with our own CVD systems in Korea and China, we will expand and strengthen our business. In addition, this alliance will allow us to offer competitive products utilizing the combined technical resources of both companies.